Hello all. My name is paul and I need some advice please. My wife and I are 6 months into our IVA of £74k. I was made redundant from a well paid job and ended up taking a job where I work 60+ hours a week on nights to keep the mortgage. Our IVA is set up and because of this, I cannot get a job in the financial services sector. I took my ex-employer to tribunal for unfair dismissal and was settled on the day with £8000. The barrister on the other side said that I get to keep this money and theres no need to pay into the IVA. The IP is telling me that this needs to be paid in but they can do a creditors meeting to ask of I can keep any. I am not trying to shy away from my debt at all but this money should be for my family (I have a 5yr old and 2yr old) as compensation for being in this situation. Any advice on what I can say please? The IP will not make a decision even though I offered to go 50/50. Also, what happens with the equity release after 5 years please? I was told that I can chose to pay 12 extra instalments instead of giving all my equity away. Is this right please?
Thanks all
Your IP cannot say yay or nay - it will have to go to your creditors. As regards equity release you need to check your paperwork to see what it says. These days it does seem to be going down the secured loan route rather than remortgage. Depends on how much equity you have in your house at the time.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The payment of £8,000 will be regarded as a windfall and, as such, is payable to your IVA. Your IP can, as he suggests, ask the creditors if they are willing to allow you to keep some, but it is not up to him ( nor the case barrister).
As regards equity release, a 12 month extension is a fall back option, but not one you can choose. You first have to attempt to remortgage. If you have the new terms, you will also have to attempt a secured loan, if the re-mortgage fails. If you are unable to release equity (and your IP may well try on your behalf) then, and only then, does the 12 month extension kick in.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
